Ford set for the sale of Aston Martin

Ford Motor Co. is planning to sell its profitable Aston Martin, the luxury sports car brand to a group of investors led by U.K. auto-racing champion David Richards, sources familiar with the situation said. The luxury sports-car unit will be sold for about $870 million.

Richards, the founder of Prodrive Ltd., the group that runs Aston Martin's racing team and is now set to introduce a Formula One team will be joined in the venture by two Kuwait-based Islamic investment companies, Adeem Investment KSC and Investment Dar Co.

An e-mailed statement of Ford said that the company will be making an important declaration pertaining to Aston Martin at 1:00 p.m. London time today.

The sale is imperative for the automaker who reported a $12.7 billion net loss for 2006, in January. Ford is now making efforts to rise from the disgrace, restructure itself as a smaller, more competitive company taking into account receding share in the U.S. markets.

“They do need the cash desperately,” said Dennis Virag, president of Automotive Consulting Group in Ann Arbor, Michigan. “A niche product like Aston Martin is a diversion from the task at hand.”

The sale of Aston Martin comes almost six months after the U.S. car group overtly pointed that it intended to clear out the business.

The Transport and General Workers Union (T&G), which represents Aston Martin workers, said decisive factors for the transaction should be to continue manufacturing in Britain and maximize jobs.

"The bid from Prodrive appears to best meet our criterion which is why we're looking forward to meeting with them at the earliest opportunity," said Dave Osborne, T&G national secretary for the car industry.

Ford shares went up 5 cents from March 9th New York close to $7.98 at 9:39 a.m. in Frankfurt.